G7 countries to provide US$19.8 billion in aid to Ukraine
G7 countries to provide US$19.8 billion in aid to Ukraine
The Group of Seven leading economies agreed Friday to provide US$19.8 billion in economic aid to Ukraine to help keep tight finances from hindering its ability to defend itself from Russia's invasion.
German Finance Minister Christian Lindner told reporters that US$9.5 billion of the total amount was mobilized at meetings of the G-7 finance ministers in Koenigswinter, Germany, this week.
“We agreed that Ukraine's financial situation must have no influence on Ukraine's ability to defend itself successfully,” he said. “We need to do our utmost to end this war.”
- Complete coverage of the war in Ukraine
- CTV News in Ukraine: Galadza sees destruction of invasion
- Russian troops planted mines in Ukraine's fields: Sajjan
The money is intended to help the Ukrainian government keep basic services for its people functioning, and is separate from efforts to provide the country with weapons and humanitarian aid.
The needs are vast.
Kristalina Georgieva, the International Monetary Fund's managing director, last month said Ukraine's financial ministry had estimated the country will need $5 billion in international assistance per month to help cover essential government services and keep the country's economy going.
Russia's invasion touched on almost every topic of the finance ministers' meetings this week, from the need to reduce reliance on Russian energy to reforming relationships between countries to maintain economic stability.
“Russia's war of aggression is causing global economic disruptions, impacting the security of global energy supply, food production and exports of food and agricultural commodities, as well as the functioning of global supply chains in general,” the G-7's communique stated.
U.S. Treasury Secretary Janet Yellen and other leaders spoke this week about the need for allies to put together enough additional aid to help Ukraine “get through” the Russian invasion.
“All of us pledged to do what's necessary to fill the gap,” Yellen said Thursday. “We're going to put together the resources that they need.”
The International Monetary Fund's latest world economic outlook says Ukraine's economy is projected to shrink by 35% this year and next.
The finance ministers of the G-7 - which includes Canada, France, Germany, Italy, Japan, the United Kingdom and the U.S. - also have grappled with deepening inflation, food security concerns and other economic issues during their talks.
A communique marking the end of their meetings addressed commitments to addressing debt distress in low-income countries, trying to ease the fallout from the coronavirus pandemic and staving off inflation rates “that have reached levels not seen for decades.”
As the finance ministers were meeting in Germany, the U.S. overwhelmingly approved its own $40 billion infusion of military and economic aid for Ukraine and its allies. A portion of that U.S. funding is included in the G-7 package for Ukraine.
The United Kingdom committed $50 million toward Ukraine from the London-based European Bank of Reconstruction and Development, Treasury chief Rishi Sunak said.
“This comes on top of the $950m in loan guarantees that the UK has already committed to significantly scale up World Bank lending to the Government of Ukraine to help meet urgent fiscal need,” according to a news release from Sunak's office.
This week was a rally for funds to Ukraine and those affected by the war.
Treasury and several global development banks announced Wednesday that they would spend tens of billions to work “swiftly to bring to bear their financing, policy engagement, technical assistance” to prevent starvation prompted by the war, rising food costs and climate damage to crops.
That money will be spent on supporting farmers, addressing the fertilizer supply crisis, and developing land for food production, among other issues.
Other issues of concern for G-7 finance leaders touched on the need for countries to increase scrutiny and regulation of cryptocurrency and other digital assets and streamlining pandemic responses.
Moulson reported from Berlin
Get in touch
Do you have any questions about the attack on Ukraine? Email firstname.lastname@example.org.
- Please include your name, location, and contact information if you are willing to speak to a journalist with CTV News.
- Your comments may be used in a CTVNews.ca story.
MORE Business News
The Canada Day long weekend is the perfect time for burgers on the grill, cold drinks and time with family and friends. Yet a backyard barbecue comes with a bigger price tag this year as food prices soared 9.7 per cent in May.
New federal regulations to force down the greenhouse gas emissions from gasoline and diesel will cost Canadians up to 13 cents more per litre at the pump by 2030.
With inflation reaching a 40-year high, many Canadians have been left in a state of worry. Not only about the rising prices of consumer goods, but whether or not they should continue to save money. It’s not such a simple question, and it depends greatly on your circumstances, contributor Christopher Liew explains in an exclusive column for CTVNews.ca.
As inflation rates soar to the highest they've been in Canada in nearly forty years, nearly half of Canadians say that right now, they're doing worse financially than they were at this time last year.
As Canada’s inflation soars, two ‘extreme couponers’ offer their advice on how to save at the grocery store.
With Statistics Canada reporting a 9.7 per cent increase in food costs over the last year, Canadians are being pushed to find ways to pinch pennies at the grocery stores. Here are some ways to save.
As fuel prices reach record highs and drive inflation, there have been growing calls for governments to temporarily suspend or reduce gas taxes. CTVNews.ca spoke with experts on whether a gas tax holiday makes sense in Canada.
Soaring gas prices helped the annual inflation rate in May soar to its highest level in nearly 40 years, as the rising cost of living for Canadians squeezed household budgets and bolstered expectations the Bank of Canada will opt for a supersized interest rate hike next month.